The financials section of a business plan is where you document the numbers and convince investors that your company is a good risk.More >>

Here's a brief overview of seven benefits that may help you strengthen your employee packages:

Cross-tested plans

Also referred to as new comparability plans, cross-tested plans are used to provide a greater share of the contributions for the principals or a select group of employees. Plan designs using cross-tested allocation formulas allow companies to make larger contributions for certain job classifications. The allocation formula may state that highly compensated employees or owners will receive a considerably greater percentage of pay allocation than the staff employees. This type of formula is well suited for smaller employers and often works well where the key employees, on average, are older than the other employees.

Executive life insurance

A simple and tax-efficient way for a business to help selected employees pay for additional life insurance. The employee applies for life insurance, names a beneficiary, and pays income tax on the amount of the premium. The employer pays the premium and deducts the amount.

Group Long Term Care

An employer may provide employees with insurance which generally covers nursing home costs, home health care costs, and custodial care required due to a chronic illness or condition.

401(k)

A profit-sharing or stock bonus plan which permits your employees to help provide for their own retirement by electing to reduce their salaries by a set amount and contributing that amount to the plan on a pre-tax and/or after-tax basis. The company can decide whether or not to contribute to the plan.

Key executive life insurance

A plan to protect the business against the financial losses that can occur when a valuable employee dies. The company obtains life insurance on the life of each key executive. In the unfortunate instance of the death of a key executive, the life insurance provides the business tax-free dollars to help replace lost profits, recruit a replacement and cover training costs.

Disability income benefit

A way to use tax-deductible business dollars to provide salary continuation benefits for selected key employees in the event of a disabling injury or illness.

Group life insurance

A way for your business to provide life insurance for yourself and your employees and deduct the employee premiums as a business expense. Insurance amounts can be a flat amount for all employees, an amount based on job level, or an amount of coverage based on salary (two or three times salary is common).